4 ways to finance your car purchase

Most people who buy a car do not have all the money ready, just like that, but need to borrow part of the money in one way or another. But what is actually the best way to finance the car? Well, it depends.

How and in what way it is best for you to finance your car purchase depends largely on your finance. But you should also determine whether it is important for you to own the car yourself, or if you really just want to be able to use the car.

Car loan

When you choose a car loan through either a car dealer or bank, a cash deposit of at least 20 percent of the car's price is required. And in connection with the purchase, your car is registered as collateral for the loan. It simply means that the lender can sell your car if you are unlikely to be able to repay the loan.

Do you want to finance your car purchase through a car loan ? We at Kvdcars sell approximately 26,000 cars a year and therefore have the opportunity to negotiate an advantageous car loan for you when you buy a car through us. You can feel secure in the fact that we cooperate with DNB Finans, which is one of the leading Nordic players in banking, finance and insurance. Let us take care of all the paperwork - so you can do other things!

Private leasing

Private leasing is ideal for those who want to have their own car, without owning it themselves. When you lease privately, you pay monthly and use the car during a contract period. You then return the car to the leasing company. Nowadays, you can choose different long contract periods, for example 12, 24 or 36 months, in some cases shorter and longer. You also choose the mileage yourself, depending on how much you are expected to drive during your lease period. You can usually also include service, car warranty and other additional services in the monthly cost. With private leasing, you can easily adapt your car ownership to your needs and life situation. You don't have to tie yourself up any longer than you wish and you don't have to worry about the car's future value or selling it on.

At Kvdcars we offer corporate leasing of used cars. If you as a corporate customer is interested in this, you are welcome to contact our Customer Service Center at +4610-167 30 00 and we will help you further.

Using your existing mortgage may be an option

Extend your mortgage

If you own your home, and it is not fully mortgaged, you can apply to extend your mortgage with the cost of the car purchase. Currently, you can borrow a maximum of 85 percent of the home's value. The new amortization rules state that mortgages between 50-70 percent of the home's value must be amortized at 1 percent per year. Mortgages over 70 percent of the value must be amortized at 2 percent. In addition, you who borrow more than 4.5 times your annual gross income (salary before tax) must repay an additional 1 percent of the total loan amount.

It is possible for the lender to make exceptions to the amortization requirement for additional loans, but this can only be done if the total loan picture does not exceed 4.5 times the household's total gross income.

Private loan

When you take out a private loan, or a so-called blank loan, you do not need to have any cash investment for the car purchase. The loan is taken without collateral and is neither tied to the car nor the home. The security only consists of you having a job and an income that the lender considers to be sufficient to pay off the loan. Here, the interest rate is usually significantly higher, compared to other types of loans.